HNDL - HNDL: 2 Major Flaws I Need To Discuss

March, 22 2022 12:00 PM Strategy Shares Nasdaq 7HANDL Index ETF

HNDL is an ETF of ETFs that aims to pay an annualized distribution of 7% monthly comprised of income, capital gains, and return of capital. HNDL's expense ratio is 0.97%.
It employs 23% effective leverage to meet distribution needs. Currently, it has about equal exposure to both fixed-income and equity products, and the distribution is sustainable in the long run.
However, there are two flaws I need to discuss. Its algorithm hasn't added value, and the policy for selecting ETFs within each asset class doesn't make sense.
I'll provide examples showing why eliminating the algorithm and going equal weight would be better. Also, buying the biggest or cheapest ETF isn't always in your best interests.
HNDL is still a strong ETF, but it's not perfect. I'm rating it as a hold.

For further details see:

Company Name:	Strategy Shares Nasdaq 7HANDL Index ETF
Stock Symbol:	HNDL
Market:	NASDAQ